30 Sept 2007

Money trail to Hamas begins with Israeli banks

This from Reuters:

Israeli authorities tracking Hamas's funds said they made an unexpected discovery last month -- cash from one of Israel's biggest banks had found its way to a security force loyal to the Palestinian Islamists in Gaza.


Officials, speaking to Reuters this week on condition of anonymity, said the incident sparked a inquiry by the Justice Ministry's anti-money laundering authority and fuelled debate within the Israeli government and banking community over whether to cut financial links to Palestinian banks in the Gaza Strip.


That debate came to a head when Israel's largest commercial bank, Bank Hapoalim (POLI.TA: Quote, Profile, Research), said on Tuesday it would stop providing Israeli shekel notes and coins to Gaza. Hapoalim attributed the move to last week's declaration by Israel that Gaza, where Hamas seized control in June, is an "enemy entity".

EXCLUSIVE-Money trail to Hamas begins with Israeli banks | Reuters

Bank Hapoalim International Site